Runsystem Co., Ltd. (3326) AI Stock Analysis

• Market Cap: ¥3.51B
• Dividend Yield: N/A
• Average Volume (3M): 6.66K
• Price to Earnings (P/E): 73.3
• Beta (1Y): 0.67
• Revenue Growth: -10.41%
• EPS Growth: -69.48%
• Country: JP
• Employees: 128
• Sector: General
• Sector Strength: N/A
• Industry: Leisure
• EPS (TTM): -4.68
• Shares Outstanding: 4,380,900
• 10 Day Avg. Volume: 4,010
• 30 Day Avg. Volume: 6,660
• PEG Ratio: -0.93
• Price to Book (P/B): 10.42
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 2.46K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥799.00 ▲(23.49% Upside)

The score is primarily held down by weak financial performance (declining profitability and high leverage) and expensive valuation (very high P/E). Technicals are strong (price above key averages and positive MACD) but are tempered by extremely overbought momentum signals that increase downside risk.

Positive Factors

Recurring revenue mix (SaaS & maintenance)

Runsystem's revenue model includes software licensing, SaaS subscriptions and ongoing maintenance/support, forming a recurring revenue base. That recurring mix tends to smooth cash flows, increase customer lifetime value, and support predictable revenue growth and budgeting over multiple quarters.

Strategic partnerships and reseller channels

Established partnerships and reseller relationships expand distribution without proportionate fixed selling costs. Durable channel ties can lower customer acquisition costs, accelerate enterprise deployments, and enable scalable go-to-market execution as product offerings broaden, supporting medium-term growth.

Improving operating cash conversion

Reported recovery in operating cash flow and improved cash-to-income conversion indicate better internal cash generation. Stronger cash conversion reduces reliance on external financing, allowing reinvestment in product development and services, strengthening the firm's operational resilience over quarters.

Negative Factors

Declining revenue and earnings

Material declines in revenue and EPS signal weakening commercial traction or pricing pressure. Persistent top-line and earnings contraction erode internal funding for R&D and sales, limit reinvestment capacity, and impair the company's ability to execute strategic initiatives over the coming quarters.

High leverage and low equity ratio

Elevated leverage and a low equity base constrain financial flexibility and increase refinancing and interest-service risk. This reduces the company's ability to fund growth internally, pursue acquisitions, or absorb shocks, making it vulnerable to adverse credit conditions over a multi-quarter horizon.

Weak operating margins and constrained free cash flow

Persistently weak EBIT/EBITDA margins and constrained free cash flow point to operational inefficiencies and limited pricing power. Ongoing margin pressure limits capacity to build reserves, invest competitively, and deliver sustained profitability, risking long-term competitiveness without structural fixes.

Runsystem Co., Ltd. Business Overview & Revenue Model

Company Description

Runsystem Co.,Ltd. engages in the store management business in Japan. The company is also involved in the operation of amusement facilities, that includes billiards, darts, and karaoke, as well as casino games; and engages in the provision of real estate management services. In addition, it offers child development support and after-school day services; manages and operates cafe store that provides relaxation systems, and food and beverages, as well as sells, maintains, and manages various systems. Runsystem Co.,Ltd. was founded in 1988 and is headquartered in Sayama City, Japan.

How the Company Makes Money

Runsystem generates revenue through several key streams, primarily by offering software licensing for its ERP and SaaS products, which provides companies with essential tools for managing their operations. Additionally, the company earns income from consulting and implementation services, helping clients integrate its software into their existing systems. Ongoing maintenance and support services also contribute to recurring revenue. Strategic partnerships with other technology firms and resellers enhance its market reach and provide additional revenue opportunities. The company may also explore revenue from training programs aimed at educating users on its software solutions.

Runsystem Co., Ltd. Financial Statement Overview

Summary

Runsystem Co., Ltd. exhibits financial instability with declining revenue and profitability. High leverage and low equity indicate financial risk, while cash flow volatility could impact future growth and liquidity.

Income Statement

Runsystem Co., Ltd. has experienced volatility in its income statement, with revenue decreasing from 2024 to 2025. Gross profit margin improved slightly, but net profit margin remains low due to declining net income. EBIT and EBITDA margins are weak, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage. The equity ratio is also low, suggesting limited shareholder equity relative to total assets. These factors point to potential financial instability and risk.

Cash Flow

Operating cash flow has shown some recovery, but free cash flow remains constrained. The operating cash flow to net income ratio improved, showing better cash conversion, but overall cash flow stability is a concern due to high financing needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.32B	5.41B	7.37B	4.94B	4.35B	4.92B
Gross Profit	1.06B	1.03B	1.01B	511.06M	139.58M	184.47M
EBITDA	373.65M	309.92M	314.10M	-8.95M	-449.22M	-659.69M
Net Income	103.47M	43.41M	99.72M	-235.16M	-682.41M	-951.08M
Balance Sheet
Total Assets	4.47B	3.80B	3.94B	3.42B	3.67B	3.65B
Cash, Cash Equivalents and Short-Term Investments	1.07B	862.66M	1.15B	771.69M	970.39M	486.60M
Total Debt	2.59B	2.60B	2.60B	2.54B	2.61B	2.81B
Total Liabilities	4.20B	3.58B	3.77B	3.34B	3.41B	3.54B
Stockholders Equity	267.00M	219.86M	176.46M	76.73M	253.11M	111.54M
Cash Flow
Free Cash Flow	0.00	930.00K	132.31M	-449.35M	-356.52M	-575.42M
Operating Cash Flow	0.00	249.99M	328.44M	-197.04M	-328.91M	-525.87M
Investing Cash Flow	0.00	-402.48M	128.26M	68.23M	208.00M	13.05M
Financing Cash Flow	0.00	-135.98M	-77.25M	-69.90M	604.71M	141.15M

Runsystem Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 647.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3326, the sentiment is Positive. The current price of 647 is below the 20-day moving average (MA) of 669.90, above the 50-day MA of 644.98, and above the 200-day MA of 607.89, indicating a bullish trend. The MACD of 41.94 indicates Negative momentum. The RSI at 93.08 is Negative, neither overbought nor oversold. The STOCH value of 87.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3326.

Runsystem Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7847	75 Outperform	¥4.17B	21.50	―	4.78%	-11.24%	-48.52%
6570	73 Outperform	¥7.31B	7.27	―	1.86%	17.11%	49.43%
6074	64 Neutral	¥2.08B	10.64	―	3.75%	3.65%	-8.80%
2330	59 Neutral	¥7.47B	15.74	―	―	73.71%	1051.90%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
3326	47 Neutral	¥3.51B	73.30	―	―	-10.41%	-69.48%
7865	42 Neutral	¥1.61B	202.48	―	―	―	―